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Updated March 18th, 2024 at 17:45 IST

Vietnamese EV maker VinFast plans to make premium-quality SUVs in India

VinFast has vowed $500 mn India investments, including setting up an EV manufacturing plant.

Reported by: Business Desk
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VinFast | Image:VinFast Auto
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Make in India: Vietnam's electric car maker VinFast Auto, in which billionaire Pham Nhat Vuong holds a 90 per cent stake, has said that India's recently notified electric vehicle policy will facilitate the EV maker’s plans to introduce a clutch of eco-friendly premium-quality SUVs at inclusive prices.

The Scheme to Promote the Manufacturing of Passenger Electric Cars offers concessional tariffs for global EV makers in India, including a major cut in custom duty for the EV majors to set up manufacturing plants in India. The long-pending chorus from the EV makers to bring down India's 70 per cent import duty on cars, now gets fulfilled. 

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The centre’s new EV scheme aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero-tailpipe emission vehicles, VinFast India CEO Pham Sanh Chau said in a statement.

"This policy envisaged for a forward-looking objective helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding aftersales policies," he added.

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EV policy wooing carmakers 

Chau further said, "With a long-term growth commitment in India, we have pledged an expenditure of  $500 million, which includes the electric vehicle manufacturing facility in Tamil Nadu." In February this year, VinFast, a major competitor to American EV had stated that it would invest Rs 4,000 crore over the next five years in the initial phase, which will generate 3,500 jobs in the Tuticorin region.

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The plant will have a capacity to produce 1.50 lakh vehicles once it becomes operational. Ola Electric Founder and CEO Bhavish Aggarwal took to microblogging site X and hailed the new EV policy, saying it is a win for the Make in India initiative.

"Great to see the Indian government's progressive decision to lower import duties on EVs for companies investing in India. This is a win for the #MakeInIndia initiative & strengthens our manufacturing ecosystem, propelling India towards a greener future. India will become the global EV hub of manufacturing and technology!," Aggarwal wrote.

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Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said a holistic view has been taken by the government of India in the best interests of the country. "The automobile industry in India and members of SIAM  will adapt to this new policy and remain committed to bringing new technology. 

(With PTI inputs) 

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Published March 18th, 2024 at 17:39 IST

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